Best Saving Plans in India 2025-26

Here we list out some of the best money saving plans in India which you can consider for investment in 2022-23. But first let’s understand what a saving plan is and why it’s important for financial independence.

What is a Savings Plan?

As is evident in its name, a savings plan is a financial scheme which encourages people to save money by investing a certain amount in the plan and receiving regular returns by way of interest. This helps the investor generate wealth for the future.

In addition, saving plans are an insurance product, meaning that they are designed to also provide financial protection for the future besides assisting in wealth generation.

4 Benefits Offered by Saving Plans

Investing in a savings plan is one of the best decisions you can make for your future and that of your family. Here’s why it is important to buy a savings scheme:

1. It is one of the fastest ways to build wealth. All of us have certain financial goals for the future. The only way to achieve them is by building an adequate corpus, which will be able to take care of all your financial needs even after you retire. And the most certain way to build that corpus is by investing in a savings plan, since the returns would be faster than the time it would take for you to save a considerable amount of money for the future by reducing expenses.
2. Saving plans help secure your post-retirement stage of life. When you wouldn’t be earning anymore, you’d still need money to sustain a decent lifestyle for you and your spouse. This is when you’d be able to reap the benefits of the decision you made years ago by investing in a savings plan. The maturity received from the plan can serve as a sizable retirement fund for all your financial needs in the golden age of your life.
3.  Investing in a savings plan is also a safer bet than choosing to invest in any other financial product. This is because savings plans are backed by the Indian government and therefore promise regular steady returns on investment with absolutely no risk for the investor.
4. Saving plans are tax-saving too! As per Section 80C of the Income Tax Act, investing in the best saving plan can fetch you a tax deduction of up to Rs. 1.5 lakh.

Best Money Saving Plans with High Returns in India (2025–26)

Choosing the right savings plan is essential for achieving your financial goals while ensuring safety and returns. In 2025–26, several investment options in India offer a combination of capital growth, tax benefits, and financial security. Here’s a detailed overview of the best money-saving plans that provide high returns:

1. Public Provident Fund (PPF)

The PPF is one of the most trusted and long-term savings schemes backed by the Government of India. It offers stable and tax-free returns, making it a popular choice among conservative investors.

• Interest Rate: ~7.1% per annum (compounded yearly)
• Lock-in Period: 15 years
• Tax Benefits: Exempt-Exempt-Exempt (EEE); deduction under Section 80C
• Best Suited For: Long-term wealth creation with zero risk

2. Mutual Funds (SIP Mode)

Mutual funds are market-linked instruments that have the potential to deliver high returns over the long term. SIPs (Systematic Investment Plans) make it easier to invest small amounts monthly.

• Expected Returns: 10–15% annually (varies with fund type)
• Lock-in Period: No lock-in for regular funds; ELSS funds have a 3-year lock-in
• Tax Benefits: ELSS funds qualify under Section 80C
• Best Suited For: Young investors and those looking for long-term capital growth

3. Unit Linked Insurance Plans (ULIPs)

ULIPs combine investment and insurance in one product. Part of the premium is invested in market-linked funds, and the rest provides life insurance cover.

• Returns: 8–12% (depends on fund performance)
• Lock-in Period: 5 years
• Tax Benefits: Section 80C and 10(10D) for maturity amount
• Best Suited For: Investors seeking insurance along with market exposure

4. Fixed Deposits (FDs)

Fixed Deposits remain a popular choice for conservative investors seeking guaranteed returns. In 2025, both bank and corporate FDs offer competitive interest rates.

• Returns: 6.5%–8.5% per annum
• Tenure: 1 to 10 years (flexible)
• Tax Benefits: 5-year tax-saving FDs under Section 80C
• Best Suited For: Low-risk investors preferring predictable income

5. National Savings Certificate (NSC)

NSC is a small savings scheme offering fixed interest and backed by the government. It is ideal for medium-term investors.

• Interest Rate: ~7.7% per annum (compounded annually)
• Lock-in Period: 5 years
• Tax Benefits: Section 80C
• Best Suited For: Safe investment with guaranteed returns

6. Senior Citizens Savings Scheme (SCSS)

This scheme is exclusively for individuals aged 60 and above. It provides a high interest rate and quarterly payouts.

• Interest Rate: ~8.2% per annum
• Lock-in Period: 5 years (extendable by 3 years)
• Tax Benefits: Section 80C
• Best Suited For: Retirees looking for regular and safe income

7. Sukanya Samriddhi Yojana (SSY)

Aimed at securing the financial future of girl children, SSY offers one of the highest interest rates among small savings schemes.

• Interest Rate: ~8.0% per annum (tax-free)
• Eligibility: Girl child below 10 years
• Maturity: At age 21 or marriage (whichever is earlier)
• Tax Benefits: Section 80C
• Best Suited For: Parents saving for their daughter’s education or marriage